Gindalbie in $1.48b refinancing
UPDATE 2.20pm: Shares in Gindalbie Metals jumped after the iron ore miner announced it had refinanced $US1.48 billion in debt to extend its repayment schedule by 10 years to 2030.
The refinancing gives its Chinese lenders and joint venture partner Ansteel security over Gindalbie’s 47.84 per cent stake in the Karara iron ore project in the State’s Midwest.
Gindalbie may also have a contingent liability under the refinancing facility via an indemnity, so that if there is a loss after exercise of the security, Anshan Iron and Steel Group Corporation could seek to recover that loss from Gindalbie.
Gindalbie’s chairman Keith Jones said the company was pleased with the outcome of the refinancing process, which he said was a prudent initiative to extend and smooth Karara’s debt maturity profile.
The Karara project produced 1.49 million wet metric tonnes for the March quarter but is still operating below its 8mtpa capacity and has been hit by the recent weakness in the iron ore price.
Ansteel is yet to exercise its right to convert an earlier $US230 million working capital loan into equity, which would dilute Gindalbie’s stake in Karara from 48 per cent to about 38 per cent.
Gindalbie shares surged 0.4 cents, or 18.18 per cent, to 2.6 cents at the close.
